Commentary

V7.274 Territorial boundaries of the UK/EU

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.274 Territorial boundaries of the UK/EU

Part V7 Tax planning | Commentary

V7.274 Territorial boundaries of the UK/EU

The UK

The UK comprises Great Britain, Northern Ireland and the territorial sea of the UK (ie waters within 12 nautical miles of the coastline).

The Isle of Man is deemed to be part of the UK as far as VAT is concerned – but the Channel Islands and Gibraltar are excluded.

The EU

Since 1 July 2013, the EU has been made up of 28 member states. It is important that a business is aware of the countries that are inside the EU because this can have an impact on the VAT liability of a supply. To give an example, a UK accountant completing a tax return for a private EU individual will charge standard rate VAT but not if the customer is established outside the EU.

The VAT territory of the EU consists of

  1.  

    •     Austria

  2.  

    •     Belgium

  3.  

    •     Bulgaria

  4.  

    •     Croatia (with effect from 1 July 2013)

  5.  

    •     Cyprus (including the British Sovereign Base Areas of Akrotiri and Dhekelia but excluding the UN buffer zone and the part of Cyprus to the north of the buffer zone where the Republic of Cyprus does not exercise effective control)

  6.  

    •     Czech Republic

  7.  

    •     Denmark (excluding the Faroe Islands and Greenland)

  8.  

    •     Estonia

  9.  

    •     Finland (excluding the Aland Islands)

  10.  

    •     France (including Monaco but excluding Martinique, French Guiana, Guadeloupe, Reunion and Saint-Martin and Mayotte)

  11.  

    •     Germany (excluding Büsingen and the Isle of Heligoland)

  12.  

    •     Greece (excluding Mount Athos (also known as Agion Oros))

  13.  

    •     Hungary

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